Weaving A Web Strategy

Weaving A Web Strategy
by Pamela Accetta Smith
Dairy companies continue exploring ways to use the
Internet to maximize profits.
An effective Web site
should get a company to a point where it has established popularity,
traffic and brand loyalty. It should contain a wealth of information,
resources and services. To that end, there are many dairy processors who
are effectively utilizing this marketing tool to promote their business and
boost their bottom line — to help ensure the success of their brand.
For example, Lincolnshire, Ill.-based Saputo Cheese USA
Inc.’s new Frigo® Cheese Heads® site, launched in July 2005,
has maximized effectiveness by using a variety of techniques to keep it
fresh and interesting for boys and girls ages 6 to 14. It introduced a more
robust, active, youthful and appealing Cheese Heads character; showcased
Frigo Cheese Heads products in a more active, engaging and interactive
environment; and has increased visits to and time spent on the brand site
with games, promotional offers and easy-to-understand product information.
Saputo says the new site has increased non-promotional
impressions, and the length of time per visit has increased as well.
Likewise, La Farge, Wis.-based Organic Valley Family of
Farms has had much success with the current iteration of its Web site,
launched in January 2005. Since then, Organic Valley reports, the site has
exceeded company performance expectations in every measurable category.
As Organic Valley’s primary online marketing
vehicle, the site has ensured its visitors quick access to the types of
information they desire, whether it be specific product information,
gourmet recipes, production standards policies, news, press releases,
agricultural advocacy programs, educational materials or children’s
content.
And, of course, there’s Kraft Foods Inc.,
Northfield, Ill., well known for its interactive Web site. The company has
optimally utilized its site to promote products, service its customers,
offer exceptional recipes, answer frequently asked questions (FAQs) and
effectively communicate all aspects of the Kraft organization.
The ways a company can optimally use this amazing
marketing medium are seemingly endless. To explore some of them, Dairy Field talked with the
following processors who are leveraging the power of the World Wide Web:
Terry Reeves, communications
director and director of Internet sales, Dippin’ Dots Inc., Paducah,
Ky.
Margaret Schwartz, Internet
marketing manager, Land O’Lakes Inc., Arden Hills, Minn.
Mark Vance, vice president
of marketing, Oberweis Ice Cream and Dairy Stores, North Aurora, Ill.
Q: How are dairy
companies using the Web to their best advantage?
Schwartz: The Internet
offers opportunities to companies of all sizes and expertise. I’ve
seen individuals from smaller regional companies be very innovative with
newsletters, interactive tours and “blogging,” while larger
companies take full advantage of online media and very creative promotions
that link online to offline programs. There really isn’t an issue
with the audience — which has basically reached critical mass —
and the advantages of the Web make it very attractive in many ways: the
opportunities to target more specifically, measure results, test ideas
fairly quickly, communicate easily with consumers, run simple surveys, and
to basically be available 24/7 with product messaging. At the very least,
to have a way for consumers to contact the company via e-mail is of great
importance. Of course, there has to be a support system within the company
to manage all of this, but that can be tackled in innovative ways as
well.
Reeves: It would be
practically impossible for us to compete in the franchise sector without a
Web site. While many people still rely on print publications for
information, we find that thousands of people do their franchise research
online. For us, simply put, opening more franchises means selling more ice
cream.
Q: How does your company leverage the Internet to
enhance business operations?
Vance: For many years,
Oberweis Dairy used our Web site purely as a place where customers could
get basic information about our company or our products (e.g., store
locations, product nutritional information or home-delivery areas). Over
the past three years, we have moved to a more dynamic model that
capitalizes on a wide array of Internet-based marketing solutions. While we
still offer the same information as before, we have added customer account
management, a new customer referral program, CRM technology that promotes a
wider range of our products, segmented e-mail marketing campaigns, customer
surveys and one of the most promotion-oriented customer loyalty programs
for our ice cream and dairy stores — The Moola Card.
Schwartz: Our
site reflects both what consumers want from Land O’Lakes —
recipes, promotions, product information — with what our brand groups
want to communicate (new product news, promotions, etc.). We create online
overlays to offline news, such as recipe features around certain themes,
new product introductions and partnership tie-ins, and facilitate many of
the offline promotions such as sweepstakes entries, registration for
rebates and loyalty membership signup. Our loyalty program, The Simple
Rewards Club, isrand messaging. We leverage the search engines for
driving traffic to the site, and other online properties for strategic
media opportunities.
Reeves: Our Web site is
promoted on most all of our POP materials and on our retail units. The site
has three functions for our company: one, to answer inquiries about our
products and company … two, to allow potential franchisees to learn
about the franchise opportunity and begin the application process …
and three, to sell ice cream and related branded items. In addition to
receiving and processing franchise leads, our company did an amazing amount
in sales of our ice cream products via the Internet in 2005 with
practically no promotion other than on the actual site. At the end of the
year, this definitely grabbed our attention, so we plan a larger offensive
for 2006.
Q: What does your Web
site currently contain that separates you from the competition?
Vance: Our Web site
really shines when it comes to giving our customers the ability to manage
their relationship with us on their terms and when it is convenient for
them. We have also been very focused on driving incremental revenue with
specific, segmented product offerings.
Schwartz: It depends on
the competition. If it’s other dairy (butter, spreads and
cheese) sites, it would be our robust recipe database, national promotions
and loyalty club. If it’s other recipe sites (AllRecipes, BH&G,
etc.) it would be our brand-specific offerings (recipes,
promotions) without third party advertising — and again, our Simple
Rewards loyalty program and newsletter. Our consumer affairs and test
kitchens have been a great benefit to our consumers, which not all dairy
companies can offer.
Reeves: There are many
great-looking Web sites that represent ice cream companies. Since our first
site debuted in 1997, we’ve mixed it up on style and substance.
We’ve gone from fun to austere and now back to fun! I think
it’s important to remember your audience. A franchise candidate or
food and beverage manager will recognize that we offer a “fun”
approach to ice cream as they research the products, yet when it’s
time to talk business they want as much information as possible and an
efficient way to contact us and submit their information. I think
we’ve reached a balance on those two fronts.
Q: What successes have
you had with your Web site content?
Vance: We’ve been
extremely successful using our Web site to establish a dynamic two-way
communication relationship with our customers. Our customers can manage
their home delivery and dairy store loyalty card programs online 24 hours a
day. We offer the Web site as our customers’ primary method of
providing feedback, while still maintaining a commitment to “real
person” contact in our customer service department (1-888-MILK-TO-U).
We actively seek customer feedback via online surveys as well. While there
is always room to improve our content and applications, I am very proud of
the innovative ways we have used the Internet to get closer to our
customers.
Schwartz: We’ve had
much success combining on-target recipe features with an accompanying
sweepstakes, and good success with open rates and click through rates from
our newsletter. We attract a very loyal group of consumers who use the site
and who sign up for our Simple Rewards program. Some promotions have proven
more successful than others, sweepstakes generally being more successful
than online coupons, which have had a bad rap due to online fraud.
Reeves: From a
financial perspective based on ’05 sales, we’ve evidently made
it convenient for customers to order ice cream online. From a franchise
perspective, it’s clearly our most popular method of lead
retrieval. We plan to pay even more attention to the content of the site
this year, possibly even devoting full time internal resources. Unlike a
print brochure or marketing piece, Web sites are a never-ending
project. Surfers expect up-to-the minute information on everything. We have
behind-the-scenes admin areas so that several departments can update their
specific information as needed, but, even a cooperative effort sometimes
isn’t enough.
Q: How has your Web site
boosted your bottom line?
Vance: Customers are buying
more items and visiting us more frequently as we have steadily increased
the value proposition. Dollars per stop (our home-delivery check measure)
is up. Likewise, our dairy store purchase frequency and check average
measures have increased as a result of the use of technology to communicate
with our customers.
Schwartz: While
it’s difficult to measure actual product purchases related to Web
site usage, our site has mitigated costs in many areas. It has lowered
printing costs when we offer downloadable brochures, made the loyalty club
program possible by eliminating high costs of print and mailings, and has
made sweepstakes programs faster and less expensive through online entries.
Other ways the Web site contributes are that it offers potential partners
value-adds for negotiating partnership programs, has kept a sizable group
of loyal consumers involved with the brand consistently for years,
facilitates communication with consumers and allows Consumer Affairs to
better handle requests for recipes and meal ideas. The Web site has also
made some market research possible that would have been cost-prohibitive
due to low incidence in certain markets and also has shortened the timeline
for research considerably.
Reeves: As I mentioned,
the number of online party packs of ice cream sold last year was very
significant, and we’re directing more resources to that effort in
’06. In addition, we’ve qualified a very large number of
franchisees through our website over the years and that means an increase
in ice cream sales for the company overall.
Q: What do you see in the future for value-added Web
site dairy marketing innovation?
Vance: The challenge for
dairy marketers is to continue to provide value to an audience that is
increasingly more Web-savvy. That value may be delivered with information,
product differentiation or direct consumer response activity. The Web
offers marketers the opportunity to be increasingly relevant to individual
customers. The Internet, e-mail and interactive technologies are now the
standards and are no longer the exceptions when it comes to building that
relevancy.
Schwartz: I see much
the same for the dairy industry as for other industries — technical
innovation such as rich media, RSS, mobile messaging, gaming, and more
interactivity in the Brand web sites. Whether there will be less TV or
other advertising is hard to say across the board, but better integration
of Web sites and online into the marketing mix is an opportunity still to
be tapped.
Reeves: Interactive Web sites will be a must. Whether it’s providing
franchise information, offering customers coupons or involving them in
market research, dairy marketers must channel a literal universe of
information into a one-to-one relationship with our customers.
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